Low gas prices fuel Metra's survival

Low fuel prices will offset depressing sales tax figures, allowing Metra to get through 2009 without a fare increase, officials said.

At a Friday meeting, Metra directors learned the latest on the agency's financial picture, which hinges on the volatile economy.

The General Assembly in 2008 passed a sales tax increase allowing proceeds to help public transit agencies, and Metra also approved a fare hike.

This year, sales tax revenues are expected to be $44.6 million less than budgeted and in 2010, the shortfall is estimated at $45.8 million, Metra Executive Director Phil Pagano said.

For 2009, Metra is making up the gap with $27 million in budget reductions plus the agency is reaping the benefits of low fuel prices. The agency had projected fuel would cost $3.60 a gallon, but now it's paying closer to $1.80.

Pagano anticipated cheap fuel will help the agency out into 2010.

As for 2011, "it's several years away, we hope the economy is in far better shape," he said.

"There's so much interest in reducing the demand for fuel, it will keep pressure on prices to be down a bit," said Director Jim LaBelle, who represents Lake County.

Pagano also noted the agency is expecting extra cash for capital projects from the federal stimulus bill and a "mini" capital bill passed recently by the General Assembly.